A known design of centrifugal compressor comprises an impeller and vaned diffuser covered by a static shroud. In order to maximise performance, the clearance between the impeller and the shroud is ideally as small as possible while allowing for minor changes in the impeller and shroud that arise during subsequent use of the compressor. Additionally, no clearance ideally exists between the shroud and the vanes of the diffuser, since any clearance presents a pathway for the working fluid to flow over the vanes without being turned. Owing to manufacturing tolerances, it is generally difficult to reproducibly manufacture a centrifugal compressor having a small, well-defined clearance between the shroud and impeller while simultaneously ensuring that there is no clearance between the shroud and the diffuser vanes.